3.—(1) This regulation applies where a member continues in employment to which a scheme applies after the member’s pensionable service in such employment terminates and—
(a)that pensionable service commenced before 6th April 1988 and terminated at the member’s request; and
(b)that pensionable service—
(i)but for that request, would have continued until the guarantee date; or
(ii)continued, or but for that request would have continued, until the relevant date.
(2) Where this regulation applies and the condition mentioned in paragraph (1)(b)(i) is satisfied, without prejudice to any right the member may acquire to a cash equivalent of money purchase benefits, the member, on making a relevant application in accordance with section 90(1)(aa) (right to guaranteed cash equivalent) acquires a right to only that part of the guaranteed cash equivalent which relates to benefits specified in paragraph (4).
(3) Where this regulation applies and the condition mentioned in paragraph (1)(b)(ii) is satisfied, without prejudice to any right the member may acquire to a cash equivalent of benefits other than money purchase benefits, the member acquires a right to the cash equivalent of only those money purchase benefits which are benefits specified in paragraph (4).
(4) The benefits referred to in paragraphs (2) and (3) are—
(a)in the case of benefits which have accrued in respect of the member’s pensionable service in employment to which the scheme applied, those benefits which are attributable to pensionable service after 5th April 1988; and
(b)in the case of benefits which have not so accrued, those benefits which were credited to the member after 5th April 1988.
(5) Where a member exercises a right to the part of a guaranteed cash equivalent described in paragraph (2) or to a cash equivalent of only certain money purchase benefits as described in paragraph (3), Chapters II and III of Part IV of the Act are modified so that, for the purposes of those provisions, the benefits to which that part or that cash equivalent, as the case may be, related are disregarded and the pensionable service by reference to which those benefits were calculated is excluded from the pensionable service referred to in paragraph 1(1) of Schedule 2 to the Act (the final salary method of revaluation of accrued benefits).